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Senior executives from AGL Energy have given evidence that the main issue causing problems with reliable energy supply in South Australia is “dysfunction” in the gas market – not too many windfarms making the grid unreliable.

Executives from AGL told a Senate inquiry in Melbourne on Tuesday they would like to build a new gas-fired power station in South Australia to increase base load capacity in the state, but gas supply was chronically unreliable in the eastern states.

Richard Wrightson, AGL’s general manager of wholesale markets, told Tuesday’s hearing the problem was so dire the company was contemplating building its own LNG hub in Queensland to help secure reliable supply downstream.